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tv   Squawk on the Street  CNBC  March 10, 2010 9:00am-11:00am EST

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all right. stock of the day here, intermune earlier it was up 16 and it was like dejavu because it was a couple days ago it was up -- there's been two huge gains in just the last couple sessions. we were down under $10 or around $11 or so. ran up to i think it ran up to about $16 one day and $16 on another day. one was after some tests. the latest is after the fda recommended i guess a panel that they approved that same lung drug we're talking about, so that stock basically, you've seen what it's done. all the way up to almost 40. unbelievable. >> thank you, rich. appreciate your time. rich bernstein, come back soon. make sure you join us tomorrow. "squawk on the street" is coming up next. live from the financial capital of the world, this is
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"squawk on the street." good morning, everybody. i'm mark haines. >> and i'm erin burnett. good to be with you and front and center this morning the big red china. new data this morning, mark, came out, very impressive data from china. exports and imports surged past expectations in february and we are talking about a surge on some counts of nearly 50%, mark. shanghai composite did fall slightly today, though. >> all right. opec sees the higher demand for oil this year than they originally thought. oil this morning right now is up 13 cents. 81.62. >> and that's interesting when you look at opec. regulators reportedly telling american banks and this is also an important one, not to increase dividends or buybacks until the economy is, quote-unquote, more stable. no one knows exactly how to define that, but obviously banks
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slash the dividends slash the buybacks and nobody wants them to put them in place and then have another crisis. later this morning we'll talk to one of wall street's top insiders about that. how are you futures? >> not looking too bad. we're up a fraction. we did need a little more for fair value but you got to call that more or less even on the open, not really pushing the market one way or the other. let's hit those markets and find out more from bob pisani. >> good morning, mark. china reported better than expected export data, helping some of the european and asian markets. here in the united states retail sales numbers continue to look pretty good on the big retailers. look at american eagle up 7%. same store sales grew 5%. earnings in line with expectations. generally fewer markdowns, higher margins. j. crew was $10 a year ago. it's $46 today. they had earnings that beat estimates by a wide, wide margin. stocks not doing much this morning because it had such a big move up in the last several
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months here. collective brands, they own pay less shoe stores and also reported pretty good numbers, narrower than expected loss. bottom line, margins up, fewer markdowns, the story for most of the reel tatailers. still waiting for details from citigroup. it was reported last night 7% to 8% yield. still haven't confirmed that from citigroup. mike huckman, how are we looking at the nasdaq? >> i'm marking the tenth anniversary of the bursting of the dot com bubble, the nasdaq has lost a little more than 50% of its value since that time, but on the up side since the most recent low about a year ago it's up better than 70%, so on this day let's check some of the big dot com shares ahead of the open. of course google wasn't publicly traded back then. it's up 0.8% premarket. yahoo shares not a good decade for them, down about 90%. however, shares since the bubble burst up about 80%. today it's not so much about computer technology as it is
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about biotechnology and in particular facet biotech getting taken out by abbott labs for $26 a share. this was a $6 stock a year ago, up 66% premarket. we have intermune shares up 67.5% because an fda panel voted yesterday to recommend approval of its lung drug. to matt nesto at the nymex. >> i'm going to call this breakout day. we got the big inventory data coming out at 10:30 eastern time this morning from the eia following the overnight surprisingly large crude build, much larger than expected there. so we could see a breakout of the $80, $82 range. interestingly in the overnight session we got all the way up to $81.95. can't get through $82. we had some yesterday at 80.16. this could be the day when we break one way or the other after the 10:30 inventory report. of course within those chinese import numbers we also say that big increase, that 20% increase
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in their february imports as well. there's also some grumblings out there in terms of gasoline, royal dutch shell saying they are joining the list of companies that are not going to sell gasoline to iran anymore. so that's where we're at here. let's get out to rick where the dollar index is parked in neutral. how can we follow the dollar index, rick, when it's not doing anything? >> you know, neutral isn't bad. just sell some volatility in the options markets. there's always a way to profit. we'll bring it to you here on the channel. as far as the fixed income markets today we all know we're going to be selling 21 billion reopen 10s. i wouldn't suspect a huge issue there. we'll argue over the detalgs. there is supply everywhere. corporate supply today, hey, instead of 4.70 for a 30-year bond which we're going to auction tomorrow how would you like 6.25 for a 30-year bond? there is a litany of companies and sovereigns that are throwing paper out there. hey, there's a white flag. many european leaders including
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mr. pradi himself declaring almost everybody with a microphone today, the greek crisis is completely over. back to you. >> thank you very much. let's look at the asian markets. we've got a mixed trade there. overnight you did have higher trade in hang seng and south korea. china was lower and the nikkei also lower. in europe though stocks have been trading higher a little bit. not a whole lot. we'll find out what the big names are and joining us to do that from london guy johnson. hello. >> hello. love the french accent. it's interesting. talking china, i have to say the politicians are out trying to talk up or i guess talk down the greek story today but it ain't going away. the market is still very much looking at it. the china legacy really not having much impact here in europe. we are up as erin said fractionally. one sector to keep your eye on today having a big impact on the sw
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swiss market. let me show you other stocks to take a look at. barclays saying overnight it might be interested in a big purchase of a u.s. bank. keep an eye on this story. it's not having a negative impact on lark lace today. we're up into positive territory. 0.2% higher. keep an eye also on the eads story. the kc-45 tanker for the u.s. air force, the fact that eads has pulled out of that contract is making big political waves over here. they're saying that the contract the second time around was rigged and they're talking about retaliation. that's certainly coming out of various european capitals. sterling taking another beating today. we now have a date for the uk budget before the election march 24th. mr. haines, over to you. >> thank you very much, mr. johnson. i'm down here on the floor now with terry dolan. good morning. good to see you. >> nice to see you, mark. >> where do you think this market is headed? we're back up toward the top of the range. do we break out or continue to stay? the range?
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>> what's interesting from the dip in january we're clearly back into the uptrend but if you look at -- what i'm watching is a couple things. number one the volume seems to be a little off, less than desirable. secondly i'm looking at the hundred-day moving average and the 50-day moving average of both the s&p 500 and the dow. and if you look at them coaliti closely you'll see they're basically touching each other, moving in the same direction, i'm weary of a 50-day cross over of a hundred which would signal sell to me. doesn't mean it's going to happen. if they continue to go along this way you may see a small consolidation and low volume and the moving averages turned back up again which would keep the trend intact but i think we should be keeping an eye on some of the moving averages and looking for the shorter terms to cross the longer term. >> caution is the word of the day. >> caution is usually my word as you know, mark. so -- >> all right. thank you very much for your thoughts. >> my pleasure. >> terry dolan. coming up we've got the faber report and we'll have a sneak peek at "forbes'" latest list of
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billionaires. >> plus the 3-d revolution. look agt those movies and how they're performing coming actually to your living room. we'll talk about 3-d televisions whether they're the real deal and how to profit from it. that leads us to our street poll of the day. do you plan already on buying a 3d television for your home? you can see the options. yes, asap. never. or not until prices are a lot lower. please vote squawk on the
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welcome back to "squawk on the street." i'm david faber. yes, once again we need to go quickly into the manure menage starting with terra's decision this morning we first told you about to deem superior, no surprise here, that offer it got from cf that last week. it's worth about $47 in cash and stock right now. certainly it's superior to a $41.10 all cash bid from norway's yara. yes, i do like saying norway's yara. there's a look at terra for its part. you can see where it is and of course we'll also take a look at cf. what's the bid? $37.15 in cash. 0.593 shares of cf for each share of terra and cf shares, you know, when i told you last friday, man, these things are high given what i'm hearing at least about potential of agrium
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trying to raise its bid for cf or get something done there or even yara coming back. cf shares have fallen rather significantly at least in the last few days. though still above a hundred dollars a share at about 101 or so. the question of course is what will norway's yara choose to do? even its own banker is not quite sure on that front. the board i am told will meet tomorrow at yara and it has five business days essentially to come back and equal if not actually top the bid from cf. that's how these agreements work. those five business days actually start tomorrow so really we won't know anything until the 17th. so a week from today but the board will meet. bankers, you know what? i'm hearing from them they're not even sure what their own client is going to do. maybe they don't want to tell me. i actually believe it. the deadline is the 17th. yara could say sorry we're not going to compete. we'll take home the prize, the
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$123 million break fee. interesting yara chose here not to actually come back to terra and try and negotiate a new merger agreement. if you remember these kinds of situations in the past, remember the battle between qwest and verizon for mci for example? verizon just kept upping the bid, upping the ante with mci ultimately prevailing. they wouldn't let the clock start. in this case yara has chosen to let the clock start. maybe it means nothing. they're norwegian after all. they may approach things a bit differently. they're busy preparing for the olympics in four years. that being said we'll see what yara chooses to do. if they allow cf and terra to get together of course it may mean they can't get the entrance into the u.s. market that they want. in order to compete they certainly would have to come with a bid of many would say at least $48 a share because their deal will take longer to complete than this cf deal for terra which can close in as few as i believe 27 or 28 days given the tender offer is already moving towards expiration.
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cf has given them a merger agreement that's signed so terra can simply sign on the dotted line seven days from now if they don't hear from yara. real quick tloi the subject of hostile bids and sometimes companies saying no and succeeding and some would say well you disenfranchised your own share holders. can't say that about facet biotech. biotech company, small company, fought off biogen sometime back, a $17.50 a share bid. why am i mentioning this company? i know it's small. take a look at what's going to happen to the stock today. $27 a share they managed to get from abbott, $450 million total value. a lot of cash on the balance sheet of facet. it's actually a bigger dollar value paying for stock the but you x out the cash instead of debt where we typically add it in. 27 bucks a share, they fought off biogen 17.50 and a lot of their shareholders saying hey what did you do? we got hurt. if you hung in there you
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certainly didn't get hurt. facet is going to be up a lot today. erin, back to you. >> thank you very much, mr. faber. another name that sticks out shares of teen retailer american eagle. we wanted to highlight this one in early trade, trading higher in premarket. profits were in line with expectations, mark, at 29 cents a share. sales though up and that's obviously the most important thing. you can find a lot of ways to get profits to go up. shares much harder. they were up 7.3% just shy of a billion dollars. same store sales up 5%. the company also continuing to keep a tight grip on the bottom line and costs announcing late yesterday it's going to be closing all 28 of its martin-osa clothing stores and the chain's online business because it failed to meet internal targets. obviously american eagle, mark, known as a hot brand for teens. i know you've always pointed out you can be that one month and not the next. it's a fickle market. >> a tough business. markets are up and the billionaires are back. the much anticipated "forbes"
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billionaire list will be released tonight at 6:00 eastern. got my fingers crossed. scott coen live this morning in miami. he always gets the tough assignments. with more on what we can expect. scotty? >> hi, mark. we've had a peek and i'm not going to tell you where you are on the list. you'll just have to see. one of the great things about this "forbes" issue is the curiosity factor. you get to see who's got what, who's got the biggest boat and so on but there's also something that you can do if you look at it a little more closely and that is it gives you a sense of what's going on with the economy and just like what's been going on in economies all around the world this year's "forbes" list is all about comebacks. >> the annual "forbes" billionaire face-off. 24 issues hitting news stands in as many years but global wealth editor matt miller says this is by far the most stressful.
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>> assets are much harder to value and there's a lot more math and talking about valuations that add stress to the report. >> reporter: in 2009 a financial blood bath. assets slashed in half, a billionaire bust. 2010, a revival. >> i can't tell you who the richest person in the world is yet but i can tell you it's been one of the most closely watched races that we've ever seen. two people were very much neck and neck. >> while the usual suspects are in the running for top dog, topping the list for some of the most impressive comebacks are the hedge fund honchos who have more than made up for losses suffered in '08. in some cases they're even wealth err than they were three years ago. many billionaires have stock prices and company values to thank but we can't let the cat out of the bag entirely. though it is after all the year of the tiger so look east for some big surprises. >> there is a shocking number of new asians on the list this year, much more than people would anticipate.
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>> reporter: it's interesting. you think about it and you look at this as a way to measure the economy of course over much of the last year we were looking at a very weak u.s. dollar, weak u.s. purchasing power so, indeed, u.s. billionaires did not advance nearly as much as a lot of foreign counterparts, places like russia and the like did very, very well. so stay tuned. the list comes out later tonight. it's going to be very interesting. not just again for the curiosity factor but about what it says about the global economy. mark and erin? >> thank you very much, scott cohn. as opec is predicting higher demand we're talking with two of the biggest names in oil coming up next, saudi arabia's big oil company and a top executive at conco. >> and later the new debate within the fed could clarify just when a rate hike will come. is that much transparency a good thing? i don't know. that's a separate topic of conversation.
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all right. as we count you down to the opening bell we'll check the futures. we've slipped a bit. still awfully close to fair value, though. and so there's really not much going to happen at the open unless something dramatic changes between now and then. we're right around fair value. these are the s&p minis. they're down a half a point as well. >> minis make us think of donuts. to the crude oil trade, oil down just slightly.
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our numbers are just a tiny bit off of what you're seeing on the screen but a similar story, above 81 but down just a few cents. gold is up a little bit. dollar index is virtually unchanged. speaking of oil, oil back above 80. we all remember back in the 30s during the financial crisis. it is a big week for energy watchers. it is the davos of energy as sharon epperson calls it and she has had interviews with two of the biggest of the big in the industry including the man in charge of the biggest oil company in the world. sharon epperson, take it away. >> reporter: well, of course we have about 45 minutes before the attendees gather in this room for the plenary session this morning but we've been talking to these major ceos on the sidelines about what is going on with the price of oil above $80 a barrel and looking at whether or not gasoline prices rising because of the refinery cutbacks we've seen have perhaps maybe artificially propped up oil prices. we talked to conaco phillips' ceo and he said it's really just about demand. >> in some of the cases the
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smaller, sophisticated refiners are having difficulty just recovering the variable cost of the crude oil they bring into the refineries so that the cutback in refining production is really because of the demand for a refined product. >> now, the energy department yesterday said that they're expecting this year energy demand to rise about 1.8% versus a year ago but there seems to be plenty of refining capacity. of course the saudis are building refining capacity, 12 million barrels per day, and they've been pouring money into that. $60 billion, $90 billion. they say they'll increase it to that amount over the next five years and the ceo says he still sees a possible problem in the future. >> there is going to be a shortage of refining capacity. many refineries that are around today are either of the wrong configuration, they're not -- the crude oil available to feed them is no longer there. >> and of course they're
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building the motiva plant here in texas making it the largest u.s. refinery, 600,000 barrels per day. that is their focus. back to you. >> thank you very much. what have we got? >> final countdown to -- >> oh, yeah. the final countdown to the opening bell and an exact science putting this company in the lime light, the ceo on his critical cancer fighter right after the bell. >> ten years after the sector burst the tech sector looks as luring as ever to the people who can't give up on the next big thing even though it kills their portfolio. we'll look at what may be new buying opportunities in tech that will actually go up, next.
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okay. we are back and at this hour the headlines, opec sees higher demand than originally forecast
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for 2010. retailer american eagle reporting a sharply higher profit. the company posted net income $59 million. that's 29 cents a share. federal regulators telling u.s. banks not increase dividends or buybacks until the economy becomes more stable. >> let's bring in michael gurka as we get you ready for the opening bell the global asset strategi strategist. one thing that stuck out to me this morning, chinese exports up 46% in the month of february. it's an astonding number whether you believe it or not. what is most important to you of all the numbers and headlines today? >> actually what i'm looking at is a couple charts that are very long dated and they're in the currency spectrum. one of them is canada versus the british pound and the reason i look at that is a cue to determine how the dollar is doing. we crossed the 200-day moving average down in the british
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pound in canada back in '07 and we've never looked back. we're at 20-year lows in that currency cost. the question is, is the u.s. dollar going to continue to see strength in the same fashion with the light currency and maybe test that low down at 1.35? right now at least with this premise of a minority government running the uk in the future, there is easily going to be more speculation of dollar strength. if i want to spin that around into our markets i'm very encouraged in the way technology has been trading, in particular the nasdaq and also on the s&p, 1144 on a weekly basis on a close of another breakout that could show us 1257. >> thank you. >> thank you. all right. chevron ringing the bell at the bigboard, ticker cvs. at the nasdaq exact sciences corp ticker exas marking national colo rectal cancer awareness month. translation, if you're over 50
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get regular colonoscopys. >> okay. we don't need to -- yeah. >> i happen to have -- we all know a guy. you may remember carl who died of colon cancer. >> yes. >> and one of his things he told me before he left was that he regretted not getting regular colonoscopies. every five years is all it takes. >> okay. >> anyway, a little personal note there. do it because it'll save you a world of trouble. >> all right. we are open. we are open slightly higher. just ever so slightly. let's check in with bob first. bob? >> and here's the crowd here trading north of 10 million shares this morning already, up another 4%, up 7% yesterday. as we've been telling you we're waiting for details of the trust preferred offering. we were reporting yesterday 8 7/8 a little over $2 billion and still haven't gotten confirmation of that. that's what the street believes right now. big volume. citigroup traded over a billion shares yesterday. the consolidated tape was 5
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billion. citigroup was 20% of the volume by itself consolidated tape here at the new york stock exchange. retail details on friday and the numbers continue to come in good. in general we're seeing clear evidence that the buying is picking up here. american eagle is up 7%. their fourth quarter same store sales up 5%. earnings were in line with expectations. fewer markdowns. higher margins, pretty much the story with most of these companies. j. crew again knocking the cover off the ball beating earnings by a wide margin. $10 stock one year ago and today of course $45, $46 stocks. not a lot of room to push the stock forward which is why it's not advancing here today though the earnings were terrific. collective brands, pay less shoe stores, those companies did better than expected. the loss there was not as great as anticipated. same story here. rising margins, fewer markdowns. trader how we looking at the nasdaq? i'm still i don't want to say celebrating but at least marking the tenth anniversary of the bursting of the dot com bubble
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here at the nasdaq. the nasdaq however is trying to make a five straight up days and build on an 18-month closing high that it hit yesterday so let's check shares of not really a bubble burst for amazon. stocks up better than 90% over the last ten years or so. google of course was not at least around as a publicly traded company making news this morning according to bloomberg the ceo eric schmidt saying something could happen soon regarding its ongoing battle with china over privacy and censorship and let's take a look at biotechnology, facet biotech up 66% on a takeout by abbott labs, trading just under 27 bucks a share which is the offer and then we've got intermune up 67% because an fda panel is recommending fda approval of its lung disease drug so watch the nasdaq. biotech index which hit a new high yesterday ahead of those events. we have the exact sciences ceo coming up in an exclusive interview after ringing the
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opening bell here at the nasdaq. let's go to rick in chicago. >> thanks, huck. if you look at supply today, boy, you can look at pretty much every sector along the spectrum. we have 21 billion in tens. those are priced at 1:00 eastern. we have the $25 billion special 56-day bill that's going to replenish the fed's supplemental fed and, of course, munis, a lot of talk about the article in "the wall street journal" today which talks about fees and also about the government subsidies on 35% of the interest expense. it seems as though investors just continue to have voracious appetites because all the metrics that measure pretty much every form of debt are moving in a fashion that seems to point to investors being comfortable with the current amounts of risk. if you look overseas, a lot of publications talking about axle weber, ecb council member, great global reputation for being a
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tough guy. he says the volcker rule has many short covering is. the best way to get at controlling risk is through higher capital requirements. mark haines, back to you. >> thank you very much, rick santelli. appreciate it. here's where the markets stand right now. the dow industrials opened a little stronger than we expected up 14 points. s&p is up 2 and change. nasdaq up about 5.5. your cnbc edge now with larry glazer, managing director with may flower advisers and kelly campbell, founder, principal, and ceo with campbell wealth management. kelly, i'll start with you. >> sure. >> we're at or close to the top of the range. can we break out or are we still stuck? >> you know, i think we are stuck and what worries me and what worries a lot of my clients who are business owners, retirees, and people close to retirement, they're worried about what's happening with the government and a lot of nontransparency. they're looking for what's going to happen with interest rates, taxes, they're worried about health care because if they hire people then it's going to cost a
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lot more money so there is a lot of indecision so at the end of the day they're less apt to start investing in the market which by the way this is not going to be a consumer driven recovery. this is going to be a business driven recovery and the business needs to know what the government is all about. they don't know it. >> larry, what do you think? stuck in the range or are we about to break out? >> sure. despite the massive stock market rallies investors do remain skeptical and that skepticism actually fueled future stock market advances. they've been crowded into fixed income getting zero or noninterest bearing yields and they may soon wake up and recognize the only way to funneled that retirement or college is by moving into domestic equities that they so despise and have little interest in today. >> larry, you have a specific way that you would do this. you're calling them quote-unquote grandma stocks. >> right, erin. >> what are those? >> sure. we need to recognize that investor skepticism and recognize it's realistic and based on the last ten years we went through and find ways to address it through risk management strategies.
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grandma stocks are simply the bread and butter companies, cash rich companies that have been cutting costs and they are dividend payors, the multinationals that will benefit from the global growth that we're seeing that investors so want to participate in but with the safety and comfort of domestic names. >> kelly, do you agree with this idea of domestic, you know, our guest yesterday, his firm is one of the largest investors in emerging stocks in the world and even he is saying buy american and the big brands larry is advocating. >> i do believe there is a lot of opportunity in the united states. it is absolutely part of our portfolio but it is not the majority anymore. we do have a lot of different things outside the united states, currencies, commodities, global real estate and fixed income but i'll tell you one thing we're looking hard at and putting in our portfolios, absolute return, we're looking for opportunities and there is going to be a lot of volatility. you can't take advantage of volatility if you're long only and a lot of these domestic plays are going to be long only. we don't want just long only. we want both sides of the equation short as well.
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that's really going to help the investor over all. >> thank you. we have to go. kelly campbell ceo with campbell wealth management and larry glazer with mayflower advisers. >> have a great day. >> when people talk about whether to be bullish or not and a lot of them are talking about when interest rates are going to go up and of course that's the big potential head wind this year, we're, am i in the wrong place, guys? >> i think so. >> ah. >> try this one. >> i apologize. i was actually going into commercial. we have a few little technical glitches today. so my apologies for that. let's get to an exclusive interview that mike huckman has and this is a very interesting news maker. exact sciences. take it away, mike. >> good morning. this is a tiny market cap company that is working on a diagnostic test though for a very big problem. we're talking about colo rectal cancer. i am joined now in a cnbc exclusive by the president and ceo of exact sciences mr. kevin conroy after he rang the opening bell here at the nasdaq this morning in recognition of colon cancer awareness monthment good
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morning and thanks for being here. >> thank you for having us. >> mark haines mentioned when you hit 50 you got to get a colonoscopy to make sure there aren't signs there of colon cancer but how many americans are not getting that test because of all the anxiety ridden rigmarole associated with it? >> 50% of americans have never had a colonoscopy over the age of 50. 75% of americans over the age of 50 are not regularly screened for colon cancer. >> so how would your test work? i think you've got a sample of one here in not too graphic but practical terms. >> well, it is a very simple collection process where a patient sample is collected. >> you're talking about stool. >> correct. then with a simple collection device, a very small sample is collected, put into a vial with a dna preservative and this is sent to a clinical lap so a very easy collection process. >> would it replace a
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colonoscopy or would it be kind of a complimentary precursor? >> it is a complimentary precursor. we believe this is a test that ultimately would be used every three years in between colonoscopies. >> where are you in the development stage? when could this possibly be on the market if your test results are positive enough? >> well, right now this year in 2010 we will be focused on veil the test with preclinical studies. next year we will be running an fda clinical trial and in 2012 we hope to submit to the fda. >> finally, you say this is more than a $1 billion product potentially. why is the market assigning so little value, $150 market value? is it that they're skeptical or they're just not on a lot of radar screens? >> well, i think a lot of people are just really learning about the prospects for this test and that it detects precancers and that's a big change from the company years ago. so we think that many people will start to learn about the company. >> kevin conroy the president
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and ceo of exact sciences thanks for joining us exclusively on cnbc pharmas back to you down at the nyse. >> thank you very much. and now we'll be talking in a couple moments about the big debate on interest rates. when they're actually going to go higher. there is a huge fault line and a lot of people say they're going up this year. some of the biggest investors in the world say no not until next year and the answer to that question could be the most important thing for stocks. >> and some beefed up prices in the commodities space. pun intended. jane wells is next with the farm report. this is "squawk on the street" live from the big board. move over. national car rental? that's my choice.
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it's time for commodities corner. beef prices on the rise this year. check out lean hogs and live cattle. both up about 150% so far this
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year. what's beefing up these prices? erin looked into this in san antonio last month. but now cnbc's jane wells has the update in this morning's farm report. hi, janie. >> hey, guys. i'm at john harvey's cattle ranch in moore park and this is his bull market. americans actually eat more beef outside the home than inside which is why the cattle industry has been tied so closely to troubles in the restaurant business. overall in live stock supply is finally starting to meet lower demand just as demand may be about to rise again. things have been lean in live stock -- pork, beef, poultry have all performed like sub prime mortgages but the outlook is looking fatter as analysts predict stable feed costs and a pickup in restaurant traffic later this year. >> we'd like everybody to turn around and eat at the restaurant once in a while. >> john harvey has cut his california cattle herd in half
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and thanks to the rain doesn't have to buy much feed. >> mother nature has been great this year. >> fitch predicts a pickup in global demand for all proteins this year. the usda says china is close to allowing u.s. pork exports again same with a russia and its game of chicken over u.s. poultry. tysons predicts a better year in the chicken business due in part to lower supplies. >> historically you haven't seen any year in the last 50 years where production of poultry in the u.s. had been cut and last year it was down 4%. >> then there's pork the other money losing meat. morgan stanley predicts lower feed costs and rising hog prices will help smithfield foods finally turn a profit in the third quarter. >> every three weeks we get a new group in. >> reporter: this fourth generation hog farmer hit hard by the h1n1 scare says global demand for pork is coming back and he hopes to turn a profit for the first time since 2007. we'll have 2% fewer hogs coming
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to market plus the pigs are going to be lighter in weight by another 2% to 4% because of the poor quality of the corn crop that was produced last fall. my biggest risk with my operation is where will the price of corn go? if it goes over $4 i'm going to lose money this year. >> reporter: if you look at the price of corn it should be down this morning. the usda is saying now that we'll have the largest crop in five years smithfield foods is expected to report a much narrower loss tomorrow and the outlook is looking brighter. they say after losing $25 a pig for the last 30 months hog farmers this year could turn a six buck a pig profit and that's no bull. actually, guys, that is bull. >> thank you, jane wells. >> something's going on. whoa. did you just see something was going on with those bulls. there was an altercation beginning. >> really. >> that's an angus and two gelbys. >> the one on the side is pushing the one in the middle
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out. >> looks like ainge angry angus. >> pushing out the angry angus in the back. >> hold on. where are we? i'm sorry. this is our fault here. >> i thought we were here but we're not on e 3? >> time warner cable's lines are down and so we do not have any things to see, words, screens, whatever it may be. >> it shows how pathetic we are without a teleprompter. >> exactly. sometimes we get lost. but now mark has found us. >> yes. this one right here. die it. sorry. i thought it was yours. the fed meets in a week. while nobody knows exactly what's coming we're getting insight this morning from "the wall street journal"'s john hillsenrath who has an article in this morning's paper. good morning. >> good morning. i thought you were so eager to get to me you just skipped over the colonoscopy thing. >> i think we may have. >> i guess it was just a
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technical glitch. >> i don't know. we're having a lot of technical problems this morning. anyway, the gist of your article is what? >> that really important debate is getting engaged at the fed and that is how do they start walking away from this commitment that they've made to keep interest rates low for an extended period? you know, the whole market is watching those words. they have a meeting next week. they're not going to change the words at this meeting but they're starting to look at it internally. there is a lot of discussion inside. we could see that happen at one of the next few meetings april, may, june or something like that. that's what sets the stage potentially for higher interest rates later in the year. they want to leave wiggle room but they're at the cusp. >> don't they usually just move a comma as a signal? >> they might be moving some commas at the next meeting because they want to keep the key words. that's not what they did in 2004 when they wanted to change
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policy. they're potentially late this year maybe early next year going to be at an important turning point where they have to start raising rates from that floor and that's about more than moving a comma but about really communicating with the market, where they are and where they think they're going. they have to be very careful about it and they're going to take some time talking it through. >> all right. john, thank you very much for your insight. appreciate it. good to see you, john. it was one of the biggest market crashes in history. ten years later now, we're going to talk tech's role in the current recovery and what to buy now. >> and now the 3-d television thing. there are these movies out, mark, just knocking the ball out of the park. mark and i haven't seen these movies yet but we hear good things about them. >> right. >> now there's going to be televisions sold that allow for 3-d. we'll be talking to an executive from samsung which makes one of those coming up and also our poll of the day. we want to know if you plan on buying a 3 d tv for your home. there are your options. please let us know what you
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think. >> prices have to be a lot lower for me i'll tell you. >> right. i'm curious what would be that break point where people would be interested. >> i'd think about $200. >> $200. we'll throw that at the samsung guy. >> what am i supposed to do with the big screen tvs i have now? >> go buy a new one every year. that's what they want. >> no, no. the computer people pulled that one for years. i'm not falling for that. >> we'll be right back.
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all right. there's the morgan stanley tech index. it's been ten years since the tech bubble burst. in the past decade that index is down 46%. for those who look at the nasdaq you see right now at 2348 at the top of your screen, mark. just because something comes down doesn't mean it's going to go back up. which is the painful truth. if you opted to get back into tech one year ago, and you just got in at the first time, the index is up 95% over the past year so did you make a lot of money since the bottom. what to do with tech right now. richard power is portfolio manager of the tech fund and a man with a lot of first-hand
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experience when it comes to techs and ups and downs, let's start with you, kevin. the big question, do you think the nasdaq is ever going to go back to 50.49 or is this sort of our equivalent of the nikkei in japan which peaked in '89 and is still what, 75% off the high? >> first of all, forever is a long time. the nikkei could still go back and retain the old high. >> it could. >> the answer might be different for you man for mark for example. but i think the nasdaq can recover. i think valuations are pretty mild these days and there is not a lot of exuberance built into it. it was only at 5000 for a brief period of time. it started the year 2000 at about 4,000 and it hit a quick spike and came off it quickly. to me that was kind of a spike up and the last year has been a spike down. by the way, erin, thank you for doing the nine-year update.
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it would have been a much tougher conversation to have. >> the nine-year. that's a fair point. whi which -- what is your view? will the nasdaq go back to the high? they're both way higher than we are now. >> they are. certainly at some point it will. i couldn't tell you when that's going to happen. as long as the economy keeps recovering, tech looks pretty interesting here because companies are going to invest in technology to improve their profitability or businesses. so we generally feel pretty good about tech. >> let me ask you this. i mean, we'll get back to the old high before the sun goes supernova and envelopes the earth? >> i believe so, yes. >> 5.2 billion years. >> at least now we have a range. >> yes. >> now we need to just narrow it down a bit. the valuations on the nasdaq, at 4,000, they were out of whack. at 5,000 they were ridiculous.
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how do you see the valuations now? >> is that directed to me? >> toss up. >> okay. we think valuations right now are pretty reasonable. there's still a lot of skepticism about how well the economy is doing and what things look like later on this year. we see a lot of companies trading at earnings and free cash flow yields of around 9%, 10%. priced earnings ratios and 10, 11, 12 times that should be companies that can grow their businesses at least mid to low teens. >> all right, gentlemen. we have to go but thank you very much. >> by the way, it's somewhere between 4 billion and 5 billion years left for the sun but then another few billion as -- >> just trying to narrow it down. breaking economic data after the break and weekly inventories still ahead. >> and wall street's super lawyer rodgin cohen is going to be with us. hank paulson recently said every room he was in where deals were diop during the crisis mr. cohen
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was in too. we'll talk to him coming up.
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welcome back. wholesale intris dropped 0.2%.
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we are looking for the mirror image up a couple. last look december originally reported off and a couple down as well down 1% on the revision. you know, today is an interesting day. of course we have supply from treasury, supply from other sovereigns, from energy companies. we have supply pretty much from every corner. we see that yields and treasuries have upticked a little bit. things like mortgage spreads very tight which means a lot of buyers to go around. dollar index didn't move much. just a nick in positive territory. of course at 11:30 we're reporting on supply whether 56-day bills or 20 billion in ten-year supply. now back to erin. >> thank you very much mr. santelli. i'm here with bob pisani talking about some of the financials and how they're moving. citigroup has had a complete makeover from vikram pandit's public persona to the preferred.
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>> way to go. talk about a resurrection. he's been doing a great job and the street has been loving him particularly that testimony. the story here is yesterday we were talking about they were pricing a trust preferred, 8 7/8 is what i had been reporting, 2.3 billion. they haven't put out formal details but the street did price yesterday folks and that's my understanding and that was a major thing for them to get done. we saw a lot of other financials move. the aigs, the fannies, freddies, yesterday. there were rumors they were going to try to prevent short covering, a lot of nonsense. the fact is you have a huge momentum play. big volume in all of these stocks. once again here today. i don't know how long this is going to go on but it looks like a momentum play to me. meantime, there are also nice moves in some of the larger regional banks that are going on so your region financials, zions, huntington bank shares. they had a great day yesterday and had another great day today. their volume isn't as titanic as aig, fannie, and freddie but they've had great moves.
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now again getting the momentum piling on to the whole thing. finally what about the higher quality names? your goldman's, morgan stanleys, wells fargo, state street. they're not doing much up 0.5%, 1%. state street and the trust banks are to the down side. let's call it a race to, can i be genteel and say somewhat lesser quality names now get in now? >> you can be genteel. i won't tell anyone other words you reported some people used to describe the ones surging. denies everything. we will not use the adjective they used. thank you, bob pisani. let's get to the nasdaq and mike huckman. what are you focused on? you know we had that conversation about hey look. the high was 5,000 and that depressed us. anything now we can be optimistic about today? >> well, erin, first of all, i don't know whether they're connected or not. you can ask somebody else about that but right before the wholesale inventories report came out we were up about six points or 0.2%. we have gotten a tiny bump since then now up almost 11 points or 0.4%. we're focused on the financials
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that bob was just talking about. in addition to what he mentioned, the ceo of zions is quoted as saying he may raise capital to pay back the t.a.r.p. we're also seeing some of the retail stocks rally. children's place had earnings that were in line and put out full-year earnings guidance that at the high end is about ten cents above where the street's at. going to be another big day for biotech with facet up 66%, intermune up 66%. nasdaq, biotech index hitting another new high. biogeni up 1.5% because it made a bid for facet but abbott came in and took it out for 27 bucks a share. erin, back to you. >> thanks very much, mike huckman. i'm looking up here at crude which is holding in at the drop of right now about 20 cents, 81.30. let's get the energy trade right now. matt nesto is at the merck and he's got it. hello, matt. >> hey, erin. i have to hand it to security here. they kept all the nut cases off the trading floor today because nobody except a nut would go long. any of the energy commodities ahead of that inventory report
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especially given the surprises that we saw overnight from the rival or cousin api report which saw a tenfold increase, excuse me, decrease in gasoline inventories versus what was expected and also threefold increase, increase, excuse me, in crude inventories. 6.5 million barrels three times the average estimate. we look at the cumulative moves. 14 cents for crude. 12 cents for heat. gasoline off two cents, up two cents and natural gas down a nickel. david, let's go to him for the faber report. >> thanks a lot. matt, you know, keeping an eye on that, what can i call t. the run of the runts if you will? no offense to any of them of course. all those government owned or semigovernment owned entities yesterday. bob pisani has been talking a lot about it. we saw citi, we saw aig. we saw freddie and fannie. why don't we start with aig at least there?
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yesterday you saw the stock up at one point as much as 17%. any number of different rumors, another move up here of 11%. now yesterday there were rumors that oh, there might be some restrictions on being able to short the stock. there were rumors about further asset sales though one has to question exactly what those rumors would encompass given that aia and alico the two crown jewels of the company have had agreements to sell now, announced agreements to sell over the last couple weeks. man, look at that move up. kbl why is it happening? most likely the obvious explanation, a short squeeze. in fact, as of yesterday or today, the short interest was at a 52-week high of about 30.33 million shares. rates, that is the ability, what you pay to borrow shares, had been the mid teens to negative 40s. you're just paying an enormous amount to borrow it because there is so little stock around. according to the firm at btig
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the trading outfit 91.5% of aig's stock available for borrowers is being utilized. that's how you get a short squeeze. that's what we're seeing there. it seems to be the likely explanation. we can all debate the fundamentals of aig under the management of robert mochet, under what is largely going to be a domestic casualty property insurer and the like. with a couple other businesses perhaps there is value of course at international lease finance, a story today about their ability to actually borrow money. nonetheless, this does appear to be largely a short squeeze. we've seen the same thing in citi though perhaps less so. we told you a week ago you'd hear a lot more about the federal government and the treasury when the lockup occurs on march 16th getting out or at least getting out of some of the 7.7 billion shares that the
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treasury holds in citigroup. is it all going to happen at one time? would be a pretty big offering. nonetheless, break even for the government is $3.25. every move up here certainly helps. you can sell a lot of stock at $3.75. 28 billion shares outstanding. always like to remind people of that. you can do the math. citigroup has quite a market value these days given that amount of shares outstanding. yesterday you also saw the move into freddie and fannie. it's funny the squeeze started in aig and the minute that did and all these rumors denied by the sec with some sort of short sell ban on the fully government owned entities if you want to call it that, the government only owns 27% of citi but basically completely controls aig, freddie, and fannie. they're coming down a bit today but again the same kind of thing. they all moved up, big percentage moves. traders will tell you, i just want to make our lunch money but be careful out there. mark, back to you. >> thank you very much, david
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faber. coming up, 50 billion in fees levied on big financial firms both reportedly being considered. >> and to the influential and outspoken attorney rodgin cohen in the room on every deal struck during the financial crisis. talking about where wall street is now. coming up in a couple moments. plus your 3 d tv, mark. >> it's here. samsung hopes to sell a couple million this year. we'll ask samsung's president of consumer electronics if consumers are ready for that.
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about 45 minutes into the trading day now financials the big movers this morning. bank of america and jp morgan two of the biggest gainers on the dow. both up more than 0.5%. aig climbing another 11% in early trading. it was up 12% yesterday. and suntrust amr and boeing all hitting fresh 52-week highs. >> i think boeing is still the best performer on the dow so far this year. let's look at a few other names on the move. fda panel backing intermune's experimental drug to treat lung scarring. shares higher as you can see.
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67% up. children's place also in the news posting profits in line with expectations, discounts part of the reason the company did a little bit better than expected on the sales front. goldman sachs raising its price target on a number of coal companies. on the list massey, consol and peabody. massey up the most nearly 2%, mark. >> this just in. the bureau of labor statistics minutes ago releasing a state by state breakdown of the unemployment rate. bertha coombs has the info as we focus on jobs in america. bertha? >> mark, the bls is just out with january data, a little delayed because of annual revisions. 30 states saw unemployment rise in january. 31 states actually added jobs. unemployment in the west at 10.8% continues to be well above the national average of 9.7% in january. it's also where we saw some of the biggest nominal gains in jobs particularly in the golden state. california added more than
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32,000 jobs in january but it's revised unemployment rate ticked up from december to a new record high 12.5%. the good news is for the first time since april, 2007, the state saw net gains in construction jobs up 16,200. year over year though the continuing real estate woes in that state resulted in an 18% loss in construction and the number of unemployed continued to climb in january to just over 2.25 million people. despite that spike in unemployment in january, if you look at the more recent weekly jobless claims, they seem to have leveled off with fewer layoffs in services and construction. michigan added 6,000 jobs in january and its unemployment rate continues to be the highest in the nation but slipped to 14.3% after the numbers showed the jobless rate topping out at 14.5% in december rather than the prior reading which had been
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well over 15% last fall. metro detroit continues to have the worst unemployment in the state but saw a 0.7 drop to just over 15% in january thanks to more auto workers being called back making for a net gain of 10,000 manufacturing jobs and construction jobs rising for the second time in five months in michigan. the trend in weekly claims through february shows a dropoff in new unemployment filings in michigan despite a few loves last month. massachusetts is a very interesting case. a much better unemployment rate than the national average but now the gap has narrowed and it saw job growth for the first time in 18 months in january with a net gain of 400 jobs. the unemployment rate is now 9.5% a 34-year high. the rate appeared to fall in the fourth quarter. revisions show a steady rise through january. most sectors did see job gains
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in the bay state at the start of the year. retail was a standout with 3500 new jobs, the first gain since september. construction and finance though did continue to see some significant losses. looking at the weekly jobs claims data through february the news may not have gotten much better last month as claims ticked up the third week of february. the labored also reporting that new job openings rose to a one-year high in january led by education and health, professional and business services and hospitality jobs. coming up on "the call" i'll look at some of the nine states where unemployment actually fell. >> thanks very much. we're going to talk about the unemployment issue, states facing collapse, cities in crisis, towns in distress, a problem across this nation. one of the biggest road blocks to a national economic recovery because it involves massive spending cuts which could hurt the economy or massive tax increases which would hurt it, too. how do you trade it, mark? is there a way to trade it?
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we'll talk about that, the debt threat, betting on america all day tomorrow right here on cnbc. >> just ahead the man who doesn't want the rules of wall street changed. referred to by some as a super lawyer talks regulation, washington, and a future m & a. >> can this company revolutionize the health industry? eclipseys shares have more than doubled over the past year. the ceo coming up on the show. as we head to break we'll take a quick look at the dollar. someone on "street signs" was saying the dollar is under valued. it's time for the dollar to go up to buy america. thing as taking a chance?
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wall street is in flux. deals may be back. money may be back. no one really knows what the rules are. that's a big part of the issue. financial regulation a big part of it. it makes a lot of people snooze but may be the most important topic of conversation in america today. take a look at the financials over the past year since the market bottomed and that dark day when timothy geithner finally got the announcement right. financials have more than doubled up 112% obviously that's significantly outpacing the overall market. now the question is, will they keep making money? do higher rates matter? are they going to be doing more deals? dividends coming back. so many of them. if anyone knows it will be
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rodgin cohen. "the wall street journal" profile of you, mr. cohen, said back in november, quoted everybody in the banking industry talking about you. you've been in every room. mr. paulson said, quote, every time i looked up it seemed like rodg was in the room and of course talking about all the deals done in the darkest days of the crisis. the most important question is, has anything changed? >> yes. i think there has been a definite change. there has been a change in reality and there's been a change in perception. and both those changes go to the need for an enhanced regulatory scheme in which risk will be considerably less. >> and we -- how i guess is the question, right? we've talked about, well, banks have to have higher capital requirements or any time you sell a derivative you have to keep a piece yourself to ensure you're not creating some terrible product and offloading the risk onto someone else.
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will those things happen and are they enough? >> if we adopt legislation along the lines of the house bill or what i think is coming from the senate in the next week or so, and it includes strong resolution authority, yes. we will get there and we'll have a very robust regulatory system. and even before we have the legislation we're seeing much more aggressive supervisory action by the regulators today. >> david? >> actually, rodg, that's where i'd like to follow up when i talk to a lot of these guys running banks they say the fed has been very aggressive in terms of requiring higher capital for certain businesses and capital charges are going up across the board, which will have of course an effect on their ability to take risk and make money in those businesses. is that what you're seeing and hearing regardless of what comes out of washington? >> i am seeing that. i think what you're hearing is right on the mark.
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this is what i would call smarter capital regulation where capital is being aligned more closely with risk, rather than just some form of uniformly higher capital requirements. >> do you expect that at the end of the day that may be the most important, single change in effect to rein in risk? >> i think that is one of the most important but the most important by far will be the end of too big to fail. that's what we really need to accomplish. >> well, so many questions about whether we're going to be able to accomplish that when you look at the house version of the bill and what may come out of dodd's committee is your sense that we are going to get legislation that ultimately prevents or allows us to not deal with too big to fail any longer? >> i think we will and i think we must achieve that because if we are back with a too big to fail doctrine then we've really not accomplished much at all. >> this is where it does get
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confusing because just to simplify it all of the biggest banks have gotten a lot bigger. >> correct. >> so just in practice we can say we don't have too big to fail but we do. >> we do today and what we need is legislation which ends that and ends it efficiently and effectively and the way you do that is to provide that creditors will have some degree of risk if a bank fails. >> david? >> you know, rodgin, as erin said you were in the room for so much that went on in those crazy days of september of 2008 i wonder when you look back and when we look at the landscape today, are there any decisions that you look back on in particular and say i wish i had done something different? >> yes. during lehman i wish i had been shouting rather than speaking about the concerns that i thought were there if lehman were permitted to fail.
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>> so in retrospect, you're one of the chorus who says we never should have let lehman fail. >> i was a chorus before it failed as well as after. and i am part of that chorus, yes. >> which is a significant thing because a lot of people say it now and at the time the reason it didn't fail was because -- >> exactly. >> nobody was saying it then. so it's a fair point. i wanted to ask you about compensation. this is something obviously you deal with up close and personally. people talk about it a lot around the country. some of it's populism. some is also rooted in reality. are we making changes that are significant? >> we are. >> and going to last? >> lasting is the question. and that is why it's important you raise that because we can have these temporary responses to the populism. but what we need is something along the lines of what the federal reserve has proposed, which is guidelines which really rein in incentive compensation if it encourages risk.
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and that needs to be done internationally as well. so that there is not a competitive arbitrage. >> final question from me. i got to know you many years ago and you used to advise on a lot of good old fashioned mergers in the banking industry. do you sense we're moving from consolidation as a result of catastrophe to a more normalized area? are we going to start to see good old fashioned regular financial services kinds of deals? >> i think we will, david. but we are still probably a number of months if not a year or so away. we've got this huge inventory of failed banks that will be the -- at the forefront of consolidation over the next few months at least and then i think once that inventory clears, we'll start to move to, as you put it, good old fashioned consolidation. >> and yet will size, given your concerns about too big to fail, come in to the equation when regulators and others think about allowing consolidation, or
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is it not really size in and of itself that is the key consideration? >> i think you're right. size is not in and of itself the key consideration. the real concern is do controls mesh with the level of risk? that's the real issue, not just size, per se. but we also have enormous consolidation that can occur among the small and medium-sized banks before we get anywhere near a size issue. >> i have one final question here to squeeze this in. when you talk about the legislation right now coming out of the house you think that would make a difference. one of the big criticisms has been how it handles derivatives that there are some giant loop holes and if you can make any sort of argument that you actually trade oil on your own like an exxon mobil you're not subject to the restrictions and some are concerned that could be used to really take all the teeth out of the derivatives regulation. as we all know that was sort of the core of the problem that we're in now.
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do you think that's fair? or do you think the derivatives legislation has teeth and will work? >> i think with some modest changes it will work and i suspect that the senate bill will either impose or i would prefer go to the regulators and say we want you not to require that, a type of derivative be abolished but rather that you impose margin requirements or capital requirements or collateral requirements. >> marginal requirements the holy grail? >> it's pretty close in my view. >> one of those things. thank you so much. we appreciate it. and thanks for coming in. >> thank you. a pleasure. >> all right. we've got breaking energy news coming up as matt nesto said that was really the thing that was driving the market today. we'll see if we get a big trade on crude oil on the other side of the break.
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hi folks. welcome back to "squawk on the street." i'm matt nesto live at the nymex. we've just gotten the weekly oil inventory reports. this is the story today. the price of oil is rising. we were down about 15 cents prior to the news that showed about a 1.4 million barrel bill. that's roughly in line with the estimates and the far less than what we heard overnight from the american petroleum institute which saw 6.5 million. we're seeing the price of oil now just briefly touch $82 a barrel. we talked earlier in the morning about the possible breakout of
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this $80 to $82 range so we're at the high end and stuck still at 82 for any momentum for trying to get higher. at the same time we did see a continued draw in the gasoline and the distallates, the heating oil down 2.9 and 2.2 million respectively. erin, back to you. >> thanks very much, matt nesto. the health care plan not just -- perhaps one of the most important issues to economic growth and hiring. part of what's so contentious about it is where we're going to get cost cuts. one place is having electronic records. some say that could be a huge cost savings. >> some say not. >> and some say not. air right. because in health care there's always a eyin and a yang. eclipseys is one company i believe will argue that we could save money by having digital records. good to have you with us, sir.
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so we talk about electronic health records with various different people. i believe even ge has an effort there. you're saying this is the only one of its kind. how? >> well, it's actually one of many companies that are offering electronic health records to hospitals and physicians. and in your opening comments about reducing the cost of health care clearly the more information you know about a patient prior to treating that patient the less tests you're going to order, the less exams you have to go through so electronic health records really deliver the information about the patient at the point of care where the opportunity is. >> so you're not the only one of your kind but are competing with others. you think you do it better. >> of course. >> okay. >> so the value here is not so much the fact of the record keeping but rather what is done with it. >> there are two things. first of all when a patient shows up in any venue of care
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it's knowing everything about that patient or trying to know everything about that patient. >> let me, i'm sorry. let me back, go back to square one. >> okay. >> what's in the back of my mind is when i go into a doctor's office i see behind the receptionist book case after book case after book case. >> of paper. >> full of folders with colored tags on them, etcetera. and that hasn't changed at all. does your path eventually lead to all of that going away? >> well, mark, you need to get a new physician. because -- >> every single one i go into. gp, specialists, whomever. >> okay. so there's two problems with that. first of all, paper is a huge barrier for information to be shared. it's very difficult to do that. charts get pulled. they go missing. >> sure. >> number one. number two is if you make the software intuitive enough for a physician to use so they don't feel like they're being slowed down in that work flow that they
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have, they'll use it. and the problem that i think you have in other systems today is that they're not intuitive enough. physicians look at that and go this is difficult forme to use. i get paid for every patient i see. the more patients i see the more i get paid. our software is the software in the industry used by more physicians. more have adopted our physician order entry than any other vendor. because we've made it intuitive they don't feel they're being slowed down by using it. >> well, we're in favor of anything that cuts costs for sure. thank you very much, sir. appreciate it. >> and electronic. you travel around or move to states or you're overseas and something happens to you. no one can get your record. >> you change doctors. >> yeah. >> you do this. you do that. yeah. >> they ask if you've ever had this test and you say, i don't know. >> right. then they check your record and they discover that they don't
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know either. >> then there's that. all right. thanks so much. and good to see you. coming up, airlines have been taking off. bob's been talking a bit about that. up about 11%. the index, which is out performing the market which by the way we should celebrate is actually up 2%. we're going to talk about whether there is more up side to the ultimate trading vehicle, airlines. >> plus, how would you like to watch me in 3 d? erin, i get. me? something wrong with you. >> you get to watch -- >> now a reality. all you need are the glasses and the right tv which will cost you an arm and a leg. samsung's president of consumer electronics with his strategy to convince you to buy one will be joining us. >> i mean, talk about medical records being like the dark ages. you still need glasses? >> that's what they say. >> we'll be back. anncr vo: with the new geico glovebox app...
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tonight on the kudlow report karl rove, former senior adviser to president george w. bush takes some time off from fox to talk taxes, spending, and the future of the republican party. tonight at 7:00 right after "mad money" with jim cramer. >> and let's look at financials. they are all trading higher across the board again. yes, it is a momentum trade. keep that in mind. doesn't mean it can't keep going up. it just means it's been a little stupendous and sudden perhaps. at the top of the hour on "the call" the focus will be on financials. should you invest in them now? jp morgan and goldman sachs talking about returning cash to shareholders whether through buybacks or dividends. are regulators telling them not
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to do it? and at 12:20, is robert benmosche the ceo worth the money he is getting to turn the company around? he created the magic 9 million. you know, if regulators signed off on his compensation package. >> right. >> which was just north of that and when the government owned so much of aig, then everybody else could get 9 million which is why you saw 9 million out of gm and 9 million out of the top three guys at goldman sachs. benmosche made 9 million. a new magic number. >> all right. let the tv 3 d battle begin. best buy starts selling new panasonic 3 d tv sets today. they'll list for about 2500 bucks. doesn't say how big they'll be for that price. samsung also detailing prices and availability of its new 3 d tvs. live from the samsung experience store in new york, tim baxter, consumer electronics division president at samsung. good morning, sir. thanks for being with us.
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>> oh, thank you for having me. >> what's the lowest price i can get a 3-d tv for? >> well, samsung actually is introducing 15 3 d tvs starting this week with prices as low as $1699. in fact, mark, you can get three of them for under $2,000. >> wait a minute. oh, i see. not a total of three but three different models are under $2,000. >> yes. i heard that -- erin and i are bargain hunters. we heard oh, three for 2,000. what's the most expensive? >> we'll actually, literally, have 15 different models which include lcd, led, and plasma. >> yeah. >> price points from 1699 all the way up to 6999. >> okay. screen sizes from 40 inch all the way up to 65 inches. >> okay.
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so 1699 gets me a 40-inch screen. what do you got in the 50 to -- >> there is actually -- sure. 1799 you can get a 50-inch plasma tv. >> okay. >> 1999 you can get a 46-inch l.e.d. tv. >> all right. so that's not too bad but you got to wear glasses, right? >> you do have to wear glasses. but we've designed glasses that we believe are pretty comfortable and fairly stylish. so we think that consumers will feel comfortable doing this. >> i don't mean to laugh because you don't look silly. >> you look cool. >> actually relatively cool there. >> how much are the glasses? >> people are going to lose the glasses between the cushions on the couch. >> right. so how much are they? plus you going to invite people over? >> you got to have extras. >> absolutely. no. you will be marketing glasses along with content. glasses will be starting off
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about $150. however, understand when you buy a 3 d tv, and a blue ray player from samsung, you'll get two sets of glasses free and initially you'll get the monsters versus alien content. what you'll see happening, because consumers will want to buy more for their family of four. >> yeah. >> there will be a host of bundle promotions and other opportunities to get them at great deals. >> what does this look like without the glasses? >> you would not want to watch it without the glasses but to understand, the tv has a simple button that you press the button and you can from 2 d to 3 d mode so consider it an enhancement over a great performing tv today. >> so i can watch it in 2 d if i want to? >> oh, yes. >> okay. >> so really understand this, mark. very much as it's a great 2 d tv that also enables both 3 d as
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well as the other important capability which is a connective tv. an internet connected tv to stream content, netflix, blockbuster, youtube. samsung combined both 3 d and ip together. >> all right. thank you very much, tim. we appreciate it. hard to get a question in, mark. you were doing all your shopping questions. >> kind of late for an awfully expensive super bowl party. come to my place but bring your own 3 d glasses. >> i just, this is nothing about samsung but it is somewhat ironic that we're still, you know, you get these pictures of the movie theaters in the 1950s when they were all sit tlg with the 3 d glasses on and we're still there. can i use a cheap paper to have it work? >> but a lot nicer. >> why do i want to pay 150 if i could pay $1.50? >> no. those don't work. it has something to do with the glasses are electronic. they do something weird. >> they can do studies on like
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the cell phones and whether those cause cancer, too? >> i don't know. >> anyway, please vote. let us know whether you want to buy one of these right away or not. i don't know if there is a way to do this on our vote thing but we're also curious as to what your reaction is to the $150 glasses price tag and whether that changes the way you evaluate. >> it's kind of a -- >> your dog could sit on it, put his paw on it, you get a scratch on your glasses. we got to go, mark. >> aren't you thinking negatively. what do we got coming up? once again we've lost our -- >> oh, we are promising -- here we go -- call me john and his new router. >> also look at cisco. since most service providers will use the company's just announced routers to accommodate increased band width and capacity needs for the 3 d signals. >> content providers could also benefit. and obviously there we'll be
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talking about disney. you got espn, directv, and dreamworks and then those movies which will eventually come back on the dvd and you could use them with alice in wonderland or avatar. in terms of retailers, best buy and amazon will be the ones selling these and of course there's that samsung store which i believe is a time warner center. get our prompter back up. >> do you realize that was not the tease? we still have to do the tease. >> come on, haines. >> straight ahead airlines up 11% year to date. what does it say about the recovery and how to play it? 
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all right. just some headlines we want to share with you regarding u.s. bancorp. u.s. bancorp's ceo says they want to increase their dividend at usb, but they are waiting for the green light from regulators to do so. obviously, this is the big question because, well, a lot of people believe that regulators are discouraging banks from buybacks of their own stock or raising their dividends because they want them to keep the cash on hand in case the crisis isn't fully over. the banks would like to do some dividend increases. u.s. bancorp the one in the headlines on that. we mentioned airlines have been on a big gain.
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these are trading vehicles and can't really say they're long-term investment, but you can make a whole lot of money in the short term. that includes trucks, et cetera, airlines, 170% this since the bottom. transport analyst along with hunter kaye, the analyst at stephen nicholas. good to have you with us. let's start with you, hunter. airlines are up 170%. is it hard to make the argument that they'll keep going up? >> well, obviously, we've seen a good run as you mentioned. you need to start being selective at this point. we're looking at valuation and those share that underperformed this group on a relative basis and we turn to alaska air group which is one of the top picks in that regard. american airlines, amr is good as well. it is hard to justify too much new money and if you're optimistic this space will work for you with a 40% and 50% upside here. if things keep getting better they'll put more planes back in service because even though things have been rough for them the planes have been full.
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>> yeah. you're right. i don't think the planes being out of sers are in fear for us because the orders they have are relatively light and the aircraft scheduled for delivery are being used as replacement aircraft and the aircraft available for purchase is the airplanes are very old, inefficient and older aircraft that are not attractive. so you're right in pointing out the capacity issue because supply/demand equilibrium is the best thing airlines have going on right now. as long as they're scared of gas, which they are, they will continue to focus supply constraint. >> john, you prefer the rails to the airlines, right? >> we don't follow the airlines, but yeah. on the freight side we've seen good trends here, good leading indicators that suggest us to that the economy's going to be pretty good. >> among them you like union pacific. why? >> you know, these rail stocks, if you look at the volumes year to date, a lot of these companies, union pacific specifically is on track to do double digit volume growth which
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is unprecedented for a railroad. some of that is easy comparison and some of that is the environment getting better and if you look at where consensus is at, you're looking at 4% and 5% volume growth. there's upside leverage to these names. what about as a passenger? when are we going to get some new planes where they just feel better to fly? why don't we put it that way. it's a more pleasant experience where the seats go back and they smell good. >> they're refurbishing the existing fleets in a lot of regard. i was on a flight the other day on a 35-year-old aircraft and a passenger asked the flight attendant if it was a new airplane simply because the seats were new leather seats. you can get a much better product by putting new lighting and new seats which is much cheaper than buying a $40 or $50 million new air tram. you can expect that to continue, so don't hold your breath, to answer your question. >> i'm fine if they go with the
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cheap thing as long as the seats go back which in the american branded carriers is not the case lately. thanks to both, even on those long-haul flights. 12-hour flight, seats don't go back. >> six stocks in 60 seconds on the other side of the break. >> when was the last time you were on a plane? don't say it to the world. we'll be back. when is the last time? with fidelity, you can take your trading around the world, because now you can trade u.s. and foreign stocks online, in 12 markets, 24 hours a day, all from the same account,
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. street poll results, do you plan on buying a 3d television for your home? let's flip it. only 4%. >> 96% say not now. half of those say not ever, but they could change their mind, but -- >> not until prices are much lower and it depends what price point you're looking at, you know. time for "six in 60." the glasses thing bothers me. 150 bucks a pair and then super bowl sunday the party can't be at your house. so -- you know, march madness, to put it more contemporaneous.
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>> exactly. plus, there's the losing and scratching of the glasses which personally -- >> those glasses will vanish. i can't keep remotes much less pairs of glasses. anyway, i believe it's time for -- >> yes, it is. i believe we rotate so i'll start today. >> lockheed martin upgraded to neutral from underperform at mcquarry research, i believe that is the australian company known for buying american toll roads. citrix systems upgraded to sell at mkm. the stock's up about 2%. and fortune brands selling its cobra golf brand to puma. the company keeping its titlist and footjoy brands and i believe they still make big bertha. >> chevron downgraded to neutral from buy at babel. rilen group at deutsche bank. dicks sporting goods downgraded to neutral from buy following its earnings announcement yesterday upon. look at that. we saved 20


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